A scope effect refers to ________.
A)lowering the per-unit manufacturing cost of a product by increasing the volume of production
B)improving the efficiency by learning new methods of management and production
C)lowering the average unit cost of all products through extension of the product line
D)increasing revenue by increasing the scope of marketing initiatives
E)lowering the marketing costs through increasing the advertising cost efficiency of a brand extension strategy

Question

Quizplus · Accepted Answer

A scope effect refers to lowering the average unit cost of all products through extension of the product line. This is achieved by spreading fixed costs across a greater range of products, resulting in a reduction of the average production cost per unit.

A Scope Effect Refers to ________